12th Mar 2026 11:18
(Alliance News) - Energean PLC on Thursday said it has agreed to buy Chevron Corp's interest in Block 14 and Block 14K offshore Angola for USD260 million in cash.
The natural gas development and production firm, with assets in Israel, Egypt, Italy, Croatia, Greece, and the UK, said it will buy Chevron's 31% operated interest in Block 14 and 16% non-operated interest in Block 14K.
"This acquisition provides a platform for long-term growth in the region and is the first step in Energean's strategy to expand its operations into West Africa," the firm said.
Energean said the final consideration will be dependent on working capital adjustments and the economic performance of the assets between the effective date and closing date.
The effective date of the transaction is the start of 2026, with closing expected by the end of the year, subject to government and regulatory approval.
In addition to the base consideration of USD260 million, contingent payments of up to USD25 million per year, capped at USD250 million in total, may be payable until 2038.
This relates to the potential future PKBB development, and is dependent on both realised oil prices and production being over certain thresholds.
Energean said it expects to fund the final consideration with a combination of non-recourse debt financing on the acquired assets and available liquidity.
It expects the transaction to be immediately cash flow accretive with strong generation of earnings before interest, tax, depreciation, and amortisation, and exploration expenses.
"The acquisition of a producing oil portfolio in Angola's world‑class hydrocarbon basin, highlighted by major recent discoveries, marks a landmark moment for Energean. It represents our first major investment in West Africa and is in line with our strategic focus on disciplined growth and geographic diversification," said Energean Chief Executive Officer Mathios Rigas.
"We look forward to working closely with the government of the Republic of Angola and our partners to secure all necessary permits and approvals, complete the acquisition, and advance Energean's strategic expansion in West Africa."
Shares in Energean were up 0.2% at 856.55 pence on Thursday morning in London. Chevron shares were up 0.4% at USD192.60 during premarket trading in New York.
By Michael Hennessey, Alliance News reporter
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